Nike's Marketing Strategy: Psychological and Public Relations

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CASE STUDY ON MARKETING
CASE STUDY ON MARKETING
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CASE STUDY ON MARKETING
INTRODUCTION
Nike was established in 1962 by Portland coach bill Bowerman and Phil Knight. It
was initially known as Blue Ribbon Sports(Berge & Gaede,2017).. These two sports fanatic
joined hands to provide low-cost, high-tech running shoes for its audiences (Nisen,2013). The
two geniuses decide to import shoes from Japan into the States from the Japanese supplier
Onitsuka (now known as the Asics). The brand started off with sportswear, shoes and
equipments. However, due to some differences the relationship between the suppliers and Nike
withered away (Berge & Gaede,2017). The brand had to start from scratch and pave its way up
to where it is today. It had to overcome considerable amount of difficulties from all quarters.
Nike’s first office was a tiny room next to a bar (Knight,2016). It got its first ever brand
recognition in the year 1972. The brand produces a wide range of sports equipments like sports
shoes, running shoes, football, basketball, golf, tennis and more. The brand focuses on the
youth of the generation (Berge & Gaede,2017).
In the early years, Knight and his team had to compromise with the quality of the shoes
due to the shortage of funds (Knight,2016). However, the team had an eye for details and came
up with the idea of shoes that were full of personality and sophistication (Knight,2016). They
paid equal attention to the presentation of the shoes and the boxes. Knight knew that their
shoes had to be stylish (Knight,2016). Nike shoes were flashy and came in different colors. The
focus was later made on creating lighter shoes for the consumers (Knight,2016). The company
was also the first ever company to start a business deal with Japan after its frosty relationship
with America after the Second World War. It is shocking that Knight himself never believed in
the concept of advertising (Knight,2016). The founder thought of it as a waste of budget
(Knight,2016). This changed gradually when Phil began to scale the business and talk to
advertising agencies. Weiden and Kennedy Advertising Agency created the famous and
inspirational slogan ‘Just Do It’ (Angeles,2014). The slogan became the new anthem for
everyone (Brohi et al.,2016). Nike has collaborated with many reputed and renowned brands
and faces. Once such hyped collaboration has been with Kendrick Lamar. In the summer of
2013, Nike returned to the SB line with an updated version of the Tennis Classic inspired by
the mid-1980s. The Tennis Classic collection had added Zoom Air technology and came in
classic colors of black, white, blue and tennis ball style “Volt” yellow.
PSYCHOLOGICAL MARKETING STRATEGY
In order to reach where it is today, Nike has let their ads speak for itself without
screaming for brand recognition. Nike has taken up the psychological mega
marketing concept when it comes to advertising and branding
(Leug,Pedersen&Clemmensen,2016). Their ads rarely mention about their products
instead it induces emotions in the customers. This strategy is known as ‘emotional
branding’. Their ads are uniquely crafted to evoke specific emotions and feelings in the
minds of the consumers (Childs&Jin,2018). Nike uses the concept of hardships and
human predicaments to invoke the human heart. Nike believes that humans can
overcome any adversity and thus the brand tag says, “Just do it.” Therefore, each ad is
designed to motivate and inspire us (Brohi et al.,2016). Nike has used the ‘watercooler
moments’ experiences to spread their brand name from door to door. This is something
Nike is an expert in doing. They very well understand how people think and act. It is a lot
more tougher to create marketing concepts of one does not know the demands and
needs of the customers (Kesavan,Bernacchi&Mascarenhas,2013). Therfore, creating
compelling content is of significant importance. Having sound knowledge of the key
principles of psychology can lead to a good market position for the company (Martínez-
Mora&Merino,2014). One of the major game-changing moments for Nike was its

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CASE STUDY ON MARKETING
collaboration with Google to make ‘Nike Phenomenal Shot’. Whenever a Nike athlete
scored a goal, display ads were delivered to all the fans in actual time of the event. The
fans could rotate their players around in 3D, use personalized filters, captions and
stickers and share the ‘Phenomenal Shot’ on social media (Mahdi et al.,2015). Not less
than 500,000 “Phenomenal Moments” were created. Another, mega marketing strategy
that Nike implemented was when it created its own YouTube series, ‘Margot Vs Lily’.
The best thing about Nike ads is that they team up with world-class athletes like Neymar
Jr, Ronaldo and others. Nike’s brand strategy is about the twist in the plot in their ads
where ordinary humans are depicted as both the hero and the villains of their own
destiny.
According to Graeme Newell who is an emotional marketing expert, Nike uses the
technique of self-pity, loathing and determination to make an impact on its consumers and build
loyalty. Thus, customer loyalty is strong in this scenario. Nike’s goal is to build a powerful brand
image and inspire its audiences (Cheah,2013). Nike uses the archetype age old tale where the
hero has a great enemy or several enemies that he has to fight against. Nike tells its audience
that the enemy is the mind. Therefore, the mind needs to be positive and focused. We should
not be bogged down by the dirty tricks played by the mind. Nike acts as a guardian angel that is
empathetic and supportive towards the humans in their struggle (Davis,2014). The brand knows
our internal battles and urges us to overcome them. The battle begins every morning as the
alarm goes off and it is still dark outside. Nike understands that every human being can identify
with an internal foe. Nike has portrayed us as the hero of our own story. Nike lost to Reebok in
1980s when it lost the remunerative aerobics market to Rebook. From then onwards, Nike has
worked itself up to reach where it is today. Nike collaborated with Apple’s iPod to create an
activity tracker that tracks the distance and speed of the user throughout a sensor attached
inside the sneaker. Thisbground breaking technology has resulted in the rise of Nike’s profit by
81%. Nike, even today leads the industry of sneakers when it comes to wearable technology,
design, comfort and more. Another way Nike executes its psychological marketing position is by
associating the achievements of the star athletes with the brand. This affirms the position of the
sneaker brand in the market.
Nike has always managed to create newsworthy shoes. There has not be one sneaker
by the giant brand that has not created enough sensation in the market. Shoes and sneakers by
Nike has always been the “next big thing” (Berge&Gaede,2017).. The Hyper Adapt 1.0 by Nike
had inbuilt sensors that molded the shoe to the original shape of the foot of the user when they
would step in it. Nike is known for making some really fun ads that people find entertaining yet
relatable. An ad by the world’s best sneaker brand says “Winner Stays” (Berge&Gaede,2017).
This ad by Nike features young teenage boys who transform into Ronaldo, Neymar Jr and other
famous footballers. The footballers were once ordinary kids just like us. The brand constantly
reminds us that in spite of being ordinary we can do extraordinary things and become
unrelenting winners(Berge&Gaede,2017). The fact that we can identify ourselves with the
brands is a big bonus for the legendary shoe- making brand. The brand also appeals to the
younger generation as it represents itself as cool, stylish and sporty- something that attracts the
next generation. Therefore, Nike is not just a brand but it is you and me. The founder of Nike,
Phil Knight in his book ‘Shoe Dog’ mentioned that he always believed that shoes were boring
(Knight,2016). He knew that the shoes should mean something to the person who purchases it.
The buyers should be able to emotionally relate with the shoes. The sneakers should stand for
something meaningful (Knight,2016). Therefore, Nike is not just another shoe company. It has
been shaping up people’s lives by motivating them and driving away their fears. The brand has
been synonymous with names like Kobe Bryant, Tiger Woods, Michael Jordan and many more
celebrities.